Massachusetts minimum wages rise in 2019

William J. Dowd wdowd@wickedlocal.com @WJD_MHDReporter

Tuesday

Jan 1, 2019 at 2:30 PM

Increases are a direct result of what many called historic wage-and-benefits legislation that Massachusetts General Court passed and Gov. Charlie Baker signed in June. That law also established a new family and medical leave program as well as a permanent sales tax holiday.

With the new year, Massachusetts hourly minimum wages increase from $11 to $12 and tipped hourly employees will also see an increase from $3.75 to $4.35.

Both increases are a direct result of what many called historic wage-and-benefits legislation that Massachusetts General Court passed and Gov. Charlie Baker signed in June.

The law, alongside changing minimum wages, creates a paid family and medical leave program and establishes a tax holiday weekend - with provisions to go into effect throughout 2019.

Under the law, the hourly minimum wages gradually increase from $11 to $15.

“Coupled with that increase will be a raise to the minimum base wage rate for tipped workers, up to $6.75, that will also be commencing in January of 2019,” wrote Baker’s office in a info sheet on the law. “Wage policies for Sunday and holiday pay will also be reformed and brought inline with most other states across the country.”

During the five-year period, the state will phase out time-and-a-half pay for workers on Sundays and holidays, according to the law.

The new legislation also creates a new $800 million paid medical and family leave safety-net program, one overseen by the state government and supported by a payroll tax. The program aims to help workers care for themselves and their family without facing financial crisis.

“The new program will provide employees who contribute to the program the ability to take paid leave for up to 12 weeks to a year to care for a family member or bond with a new child, 20 weeks a year to deal with a personal medical issue and up to 26 weeks to deal with an emergency related to deployment of a family member for military service,” wrote the governor’s office.

A person’s benefits in terms of dollar amount is determined by a percentage of his or her average weekly salary, but no one will receive more than an $850 weekly benefit.

“Self-employed persons may opt into the program,” writes the governor’s office. “For the law to apply to municipal employees, the city or town involved must vote to accept participation in the program.”

Finally, the law establishes a permanent two-day tax holiday weekend during which consumers are exempt from paying the 6.25 percent sales tax. The first tax holiday was held in August.

All of these changes packaged in the state law started out as what legislators, interest groups and the Baker administration dubbed “the grand bargain” bill. Legislators produced “the grand bargain” when interest groups, discouraged by lawmakers’ inaction, began ballot drives.

The proposed referendums were a $15 minimum wage in four years, a millionaire's tax and reducing the state tax from 6.25 percent to 5 percent. Legislators saw the proposed ballot questions as harmful policies that, if passed, could have adversely impacted Massachusetts' economy and fiscal health.

Interest groups, like Raise Up and the Retailers Association of Massachusetts, dropped their ballot questions in exchange for the items now included in the state law. The parties reached an agreement months after talks began.

The governor stood on the negotiation’s sidelines except for one item. He supported reducing the state sales tax to 5 percent.

Several people also pointed out Baker, who was up for re-election in 2018, gained from signing “the grand bargain.” By putting his signature on the bill, the Swampscott Republican would not face a groundswell of progressive voters itching to weigh in on a ballot with progressive referendums and Sen. Elizabeth Warren’s name and, by extension, support his Democratic opponent.

“I am thankful that all parties came together, compromised and found common ground to produce a better set of policies than what the ballot questions represented,” said Baker. “The Massachusetts workforce continues to grow with more and more people finding jobs and our administration is committed to maintain the commonwealth’s competitive economic environment."